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1999 PTD 3153

COMMISSIONER OF INCOME-TAX vs KHEMCHAND MOTILAL JAIN

Citation1999 PTD 3153
CourtSupreme Court of India
Case No.Civil Appeal No, 2693 arising out of S.L.P. (C.) No,94 of 1998
Date1998-05-12
Judge(s)V. N. Khare, S. P. Bharucha
ResultAppeal allowed

1. ' Leave granted.

2. ' The High Court declined to ask the Income-tax Appellate Tribunal to refer to it for adjudication the following question: "Whether, on the facts and in the circumstances of the cases, the Tribunal was right in holding that the sums of Rs,22,91,728 and Rs,22,66,746 paid by the company to the co-owners of the trade mark and partners of the erstwhile firm in lieu of trade mark and goodwill which is being used by the company for its business was a revenue expenditure?"

3. ' It did so because it found that the consistent view of the High Court had been followed by the Tribunal.

4. ' We think that a question of law does arise and that the High Court should have called for a reference. We make it clear that we express no opinion on the answer to be given.

5. ' The appeal is allowed. The order under challenge is set aside. The Tribunal shall refer to the High Court the question afore stated for its decision.

6. ' No order as to costs.

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